Out of the 11 total servers PotBS was running with, it's now down to just four. The upshot of this news is that servers will be far more dense with players -- which is the main reason Flying Lab gives concerning the shutdowns. Another reason given us is that recent updates have allowed for more characters per server.
When you're shutting down more than half of your servers, it's never a completely good thing. We feel like this is a sign that, unfortunately, PotBS missed its projected launch numbers by a good margin.
Of course, we also feel like this could be better for the community that's still playing and enjoying the game. Could PotBS be one of those MMOs with a highly dedicated community? We certainly think so and hopefully the upcoming changes to the game will help bring some more players into the fold over time. For information on how the server change will happen, the official announcement has the gritty details.